FEATURED COMPANIES

Recent events are testament to our core view that, whilst the Russian power market benefits from considerable market size and widespread electricity export links, a whole host of challenges still face prospective investors in the sector, especially as new policies suggests that the government's approach to the electricity sector is muddled. Macroeconomic trends, coupled with declining population, are set to take a toll on power demand. In addition, while we expect Russia to converge steadily towards developed standards of wealth, we caution that structural risks, including a weak business environment and poor institutional capacity will pose challenges to project development across all segment of power sector over the long term.

The Russian Federation is currently one of the top electricity generating economies in the world. Yet, a number of concurring factors point to the fact that the diverse components of Russia's power market will see rather moderate growth over our forecast period to 2021. BMI's Country Risks analysts anticipate that Russian growth will slow markedly over our 10-year forecast horizon, with real GDP growth to average 3.91% between 2017 and 2021.